We noted in an early March post that dividend payers in the S&P 500 Index were under performing the non payers by over 600 basis points during the first two months of 2014. Near that same time the market was beginning a transition out of momentum and growth stocks into value oriented equities. As fate would have it, many dividend payers screen as value type stocks. As a result, since the end of February, the dividend payers have significantly outperformed their non dividend paying counterparts in the S&P 500 Index. As the below table shows, the dividend payers are now outperforming the non payers by nearly 400 basis points. This is a nearly 1,000 basis point swing in just three months.
|From The Blog of HORAN Capital Advisors|